Cited from detikFinance (27/01/2025), “Gudang Produksi Minyakita di Tangerang Disegel, Ini Sederet Pelanggarannya”, the Indonesian Ministry of Trade has sealed a warehouse in Tangerang operated by PT Navyta Nabati Indonesia for violations involving the production of MinyaKita, a government-subsidized cooking oil. The company failed to register the required KBLI for packaging activities, a mandatory requirement for cooking oil repackers.
This case emphasizes the importance of business activities compliance under the appropriate Indonesian Standard Classification of Businesses (Klasifikasi Baku Lapangan Usaha Indonesia/KBLI).
The Indonesian Standard Classification of Businesses (Klasifikasi Baku Lapangan Usaha Indonesia /KBLI) is a system used by the Indonesian government to categorize business activities. It is based on the nature of a business’s operations, whether they involve goods or services.
According to Central Bureau of Statistics Regulation Number 2 Year 2020 on Indonesian Standard Classification of Businesses, the KBLI is a critical tool for categorizing economic activities. This regulation helps standardize business classifications and provides a system for effective governmental coordination and monitoring. It emphasizes the importance of classifying activities based on their outputs, whether goods or services and requires businesses to register under the appropriate categories.
The regulation integrates international standards such as the International Standard Industrial Classification and ASEAN-specific classifications. Each KBLI is regulated by the relevant government authorities and/or authorized bodies. Therefore, it is important to also comply with these additional regulations when registering a business and ensuring ongoing compliance.
KBLI plays a critical role in several aspects of business regulation in Indonesia, including:
There are 21 categories in the KBLI as follows:
Business must determine the right KBLI code by identifying keywords related to the business activities and selecting the closest matching KBLI code or relevant category.
All KBLI codes for activities planned to be pursued commercially must be registered.
If a business operates in multiple sectors (e.g., manufacturing and retail), business owners can register more than one KBLI code, provided they align with actual operations and are compatible. However, some KBLI codes cannot be combined with certain others. For example, a KBLI for wholesale trade cannot be combined with a KBLI for retail trade. Additionally, some KBLI codes are designated as stand-alone and cannot be combined with any other KBLI codes. For more information regarding KBLI code rules, please visit the OSS (Online Single Submission) website.
Proper KBLI registration ensures compliance with Indonesian regulations, reducing the risk of penalties or closure.
Business activities require specific permits linked to KBLI codes. Choosing the correct code helps businesses avoid unnecessary delays.
Government incentives and tax reductions apply to businesses with specific KBLI classifications. Misclassification may result in missing out on opportunities for business growth.
Based on Government Regulations Number 5 Year 2021 on Implementation of Risk-Based Business Licensing, the consequences of violating the provisions of business licensing which includes registering incorrect KBLI can be listed as follows:
Registering the correct KBLI is essential for legal operation, compliance, and business benefits. Whether a startup or established company, the right KBLI classification protects your business and ensures long-term success in Indonesia.
We can ensure your KBLI registration is accurate and compliant.
Let us help you ensuring your KBLI registration!
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